The latest Cointelegraph report tries to make sense of the ongoing crackdown on cryptocurrencies by the Securities and Exchange Commission, its rationale and potential outcomes
The Securities and Exchange Commission (SEC), led by Chairman Gary Gensler, has been at the forefront of the fight against cryptocurrencies in the United States. In recent months, the government has initiated many lawsuits against major cryptocurrency companies accused of violating security regulations.
According to critics, the government has opted for an enforcement-based regulatory strategy, failing to develop a sufficient set of laws that would address the specific characteristics of crypto assets. The concept of a security and whether it can be applied to a diversified range of assets, such as cryptocurrencies, is a major cause of uncertainty.
Despite the pressure he was under during last week’s congressional hearings, Gensler is hesitant to accept the political risk of engaging in a productive dialogue with the sector.
Source of information: Coingratelegraph.com